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2017 (4) TMI 731 - HC - VAT and Sales TaxWorks contract - the Central Air Conditioning Plant (CAP) and the Packaged Air Conditioning Plant (PAP) - whether indivisible works contract or outright sale? - Held that: - reliance was placed in the case of State of Andhra Pradesh Versus Kone Elevators (India) Ltd. [2005 (2) TMI 519 - SUPREME COURT OF INDIA], [in short 'Kone-I']. Based on the ratio deducible from the Judgment of the Supreme Court, rendered in Kone-I, the Assistant Commissioner/Assessing Officer came to the conclusion that the transaction in issue involved outright sale and was thus, amenable to tax at the rate of 20% - It however transpires that the Judgment rendered by the three judge bench of the Supreme Court in Kone-I has been overruled by the Constitution Bench of the Supreme Court by the case of KONE ELEVATOR INDIA PVT.LTD. V. STATE OF TAMIL NADU AND OTHERS [2014 (5) TMI 265 - SUPREME COURT] [in short 'KONE-II'] - whether the transaction in issue related to a composite contract or not would have to be re-examined by the Assistant Commissioner/Assessing Officer keeping in mind the ratio of the Judgment of the Supreme Court in Kone-II - The test employed by the Assistant Commissioner/ Assessing Officer in the impugned Judgment is no longer valid. Whether machine tools sold by the petitioner against Form-XVII declarations were to be taxed at concessional rate, (i.e. at the rate of 3%) under Section 3(5) of the Tamil Nadu General Sales Tax Act, 1959? - Held that: - the Assistant Commissioner/Assessing Officer has wrongly placed the onus on the petitioner to establish as to whether or not the machine tools sold by it had been consumed or not. Clearly according to us, once a declaration is furnished by the buyer in Form- XVII, the Department would have to ascertain from the buyer as to whether or not the machine tools had in fact been consumed - the matter requires reconsideration. Appeal allowed by way of remand.
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